ZeroLend winds down operations, citing revenue collapse and inactive chains

The multi-chain decentralized lending protocol ZeroLend is permanently ceasing operations after three years, citing sustained operational losses and a deteriorating market environment, according to founder Ryker. The platform's user deposits have plummeted from a peak of $359 million in November 2024 to about $6.6 million currently across its active chains. Key pressures leading to the shutdown include dormant early-stage chains, discontinued oracle support, increasing security threats, and thin lending margins, which caused gross revenue to fall sharply this year. Users are urged to withdraw funds immediately as most markets are set to zero percent loan-to-value. For assets stuck on certain networks, the team will implement a smart contract upgrade for redistribution, though the ZERO governance token offers no recovery mechanism and trades near zero. The shutdown highlights broader structural weaknesses in crypto markets, such as fragmented liquidity, according to industry observers.

(Source：Crypto Briefing)